Case study 5

Retirement Plans for High-Income Earners

Lisa, a 45-year-old doctor, has an S-Corp making \$400,000.

*Strategy:*
She sets up a *Solo 401(k) with defined benefit plan*.

* Defers \$23,000 (employee contribution).
* Employer (S-Corp) contributes \~\$40,000.
* Defined benefit plan allows an additional \~\$80,000.

*Tax Savings:*
She defers \\$143,000 into retirement accounts, saving **\\$55,000 in federal/state taxes annually**

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